SpaceX Stock Rebounds After Initial Post-IPO Decline
Space Exploration Technologies Corp. shares recovered to IPO levels on Monday following a sharp decline triggered by AI spending concerns and a major lock-up expiration.
Shares of Space Exploration Technologies Corp. rebounded to their initial public offering price on Monday, reaching $136.68. This recovery follows a period of extreme volatility where the stock fell 46% from a June 16 peak of over $211 to a closing low of $114.92 on August 6, eventually dipping below $107 on Thursday.
The decline was triggered by the company's first quarterly earnings report as a public entity. SpaceX reported second-quarter revenue of $7.8 billion, a 92% year-over-year increase, but posted a GAAP loss of $541 million. While the connectivity division remained profitable, the AI segment lost $1.3 billion. Investors expressed concern over capital expenditures for AI infrastructure, which surged to $15.8 billion.
Market pressure intensified on Thursday when a lock-up expiration made 911.5 million previously restricted shares eligible for trading, more than doubling the public float. Despite expectations of heavy selling, the stock gained 6.1% on Thursday and continued its ascent through Monday. During the earnings call, CEO Elon Musk accelerated his growth projections, stating he expects the company to reach $1 trillion in annual revenue by 2030, moving the previous timeline up by one year.
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